Bedford Property Shells Out About $21.5 Mil for Three-Building Deal

DENVER-Bedford Property Investors Inc., a REIT based in Lafayette, CA, is paying $21.52 million, or $130 per sf, for three buildings with a total of 165,191 sf along Denver’s southeast suburban corridor.

The seller is Denver-based Prime West. The price per sf marks one of the highest that has ever been paid for a single-story suburban building. Tim Swan, one of two CB Richard Ellis brokers who handled the transaction, says it is a good market deal considering location and tenant mix. The buildings currently are leased to four tenants providing a first-year yield of 9.42%.

The property is situated a quarter mile southwest of Bedford’s [email protected] project, where 206,000 sf is under development by Bedford. Bedford also is constructing the 81,000-sf Belleview Office Building in the Denver Technological Center. When all of its projects are completed, Bedford will own nearly a million sf in the Denver area.”The market fundamentals in the Denver area continue to demonstrate why this area is widely regarded as a high growth region,” says Peter B. Bedford, REIT CEO and chairman. “The addition of this office property to our existing portfolio in the Denver area is consistent with our continuing strategy of focusing our assets in the expanding markets of the western states.”

Swan told GlobeSt.com that Bedford’s purchase is a vote of confidence in the area by a major player. “We all know what REITs have been doing in the past two years,” says Swan. “They made this major commitment in the Denver market based on their experience, the stability of the market and the quality of their anchor tenants. This deal is a very positive reflection on the entire southeast market.